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Hua'an Launched China's First Open-end Fund
China's first open-end fund -- Hua'an innovation investment fund has finally entered into China's stock market September 3.
CRSC Spokesperson Warns Not to Ignore Investment Risk:
First, open-end fund is a kind of securities type established on the basis of credit by fund management companies, its risk is obviously higher than treasure bond and bank deposit. The country would not take responsibility for any risks investors met. So far, securities market does not have any measure to prevent risks. It is very possible for investors to face various risks.
Secondly, investors should not hold a too much high expectation for open-end fund. Open-end fund may face pressure by investors for redemption at any time, fund operation must keep a certain number of cashes due to current regulation which does not allow open-end fund to get financed.
Furthermore, investors shall have to pay purchase fee, redemption fee besides fund management fee, deposit fee and other operation fees.
So CRSC spokesperson suggests investors to consult related materials before they buy the fund to make sure whether open-end fund is suitable for them.
CSRC: Why Does Open-end Fund Issuance Not Adopt Number Allocation
1. Securities issuance is a kind of civil-law matter between issuer and purchaser. The principle they should abide by is: invest according to investors' own will, make decision by investors on their own, bear risks by themselves.
2. Hua'an Fund Management Company's registered capital is at 150 million yuan, net asset totals 220 million yuan (by the end of year 2000), with a working staff of no more than 100. As a limited company, it is only responsible for another side of the contract, but it is not responsible for the whole society.
3. Open-end fund does not have an upper limit in theory, but it is connected with a fund management company's ability and level in management. This time, Hua'an issued its first-phase fund, during three months since issuance, investors can not redeem money. After three months, it will open again. During the three-month period, investors should have risk awareness for the fund's net value changes are not easy to be predicted.
Hua'an Investment Direction
Hua'an's investment direction will focus on high-tech developers of electronic technology, network, biological technology, new medicine, aviation and aeronautics technology, ocean technology, new material, new energy and those under renovation and undergoing reforms in management, business system, technology development and production system, said Han Fanghe, general manager of Hua'an.
In addition, Hua'an will also target those firms having a bright future and money-making listed companies.
By PD Online staff member Li Yan
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